MN SF2937

Establishes a temporary income tax credit for taxpayers receiving retail electric service from municipal utilities or cooperative electric associations who purchase and install solar energy systems in Minnesota.

Credit percentages decline over three years: 15 percent for systems placed in service between January 1, 2023 and December 31, 2023; 13 percent for 2024; and 11 percent for 2025.

Maximum credit amounts are $2,500 for homestead properties and $15,000 for business properties, with the credit equal to the lesser of the applicable percentage of costs or the maximum allowable amount.

Credits exceed tax liability are refunded to taxpayers with appropriation from the general fund to cover refunds.

Provision expires January 1, 2027 and is effective for taxable years beginning after December 31, 2022 and before January 1, 2026.